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Challenges in Business Leadership


Discuss about the Critical Issues in Business for Literature Review.

Today in the globalizing world, organizations are more concerned for managing and maintaining different business operations. Maintaining and managing the business operations is essential for organization to achieve e goals set for the organization success. Organizations operate in several tasks at a time that requires an efficient management system. In the process of achieving organization success in the global market these operation play a critical role as thee different operation at a time make an organization unique and successful. According to Nallusamy, (2016) this much importance of managing multiple operation of an organization makes it more important for organizations to analyse and revise its management system from time to time to make it more effective and efficient. Such strategic changes made in the organization management system of an organization helps it to take it on the heights of success in the global market.

This literature review is a brief analytical understanding about several management learning that are essential to be understood for professionals to plan a strategic and efficient management system for an organization. Different factors that need to be consider for an effective system like, pervasive issue in business leadership, sustainability of the business, professional ethics of the organization, risk management, and other different global agenda that are important from business point of view for the organization growth. The research made to understand all the business leadership essentials of an organization and presented in this report shows different viewpoint of several researchers from the literature of business and management.

According to Huda, Mat Teh, Nor Muhamad, and Mohd Nasir, (2018) Business leadership in terms of an organization is defined as a technique of managing and directing a number of people to work for an organization in such a way that working together they can achieve the organization success meeting the organization goals and objectives. Globalization has made it an important aspect for organization to select people only with high efficiency and lead them in a right direction. Leading people is not that much easy therefore organizations need leaders of best quality with high efficiency. Leading people in right direction plays most important role in achieving the success as people working for the organization are the only critical element of an organization helping it for the same.

When it comes to measure the success of an organization leadership of the organization plays a critical role (Tyssen, Wald, and Heidenreich, 2014).Leading people is all about encouraging people to enhance their effectiveness as well as their efficiency on terms of their productivity for the organization. Leaders with better leadership qualities need to regenerate and keep people enthusiastic for work along with directing them with proper guidance.

Sustainability of a Business

Organization comprises of a number of people given different roles to them has better leaders to lead all these people in an effective manner. Each employee working for the organization needs some support and guidance at any stage of their work. This support and guidance people seek from the organization leaders is essential to make their work effective and efficient. According to Bird, and Mendenhall, (2016) in this process leaders need support and guidance of a diverse range, therefore leading so many people with different role assigned is not an easy task for leaders. Such diverse expectations of organization employees from their leaders justify the role of leaders in achieving the success for any organization. This also clears that leaders do face several issues that affect their efficiency and product as well. Yahaya, and Ebrahim, (2016), state that along with managing people leaders also responsible to manage other operations of the organization consisting of internal and external operation and relation with market resources. According to Covin, and Miller, (2014) managing so many operations at a time creates a lot of challenges too for leaders including the management of their own work.

Analysing all the responsibilities and roles of leaders in an organization, key challenges that leaders face while playing their role in an organization are as following:

  • Developing people
  • Inspiring employees
  • Leading different teams
  • Developing managerial effectiveness of the organization
  • Guiding changes that need to be made for organization growth
  • Managing internal stakeholders

Developing people is defined as training people to execute their work in an efficient way so that they can enhance their productivity and effectiveness as well. In doing so, leaders need to deal with various challenging while monitoring and providing coaching to the employees.

Inspiring employees is a challenge for leaders as they need to motivate employees and make them feel satisfied with their work. Making employees feel like satisfied with the job is best way to motivate them but is also one of the most difficult tasks for leader. Leaders need to play with the psychological factors of employees to make them feel the same.

Leaders are appointed to lead different teams that are supposed to perform different tasks. This requires having an understanding of a diverse range of operation and managerial styles to manage different teams at the same time. In this process of leading several teams at the same time leaders have to perform various tasks like, team building, team development, managing team, and monitoring teams. Specific challenges that leaders faces while leading different teams at a time include how to provide support, how to manage bigger teams, how to differentiate among different teams in terms of their requirements, and most importantly how to co-ordinate them in an effective manner.

Tools and Theories for Evaluating Sustainability

This is the typical management issue that every leader has to face depending upon the responsibilities and size of the organization. Leaders have to manage their time and work in such a way that they can manage their work in such a way that makes the organization to achieve its managerial goals. Leaders have to manage the organization operations’ timing to achieve the maximum productivity of the organization as an individual. There are some other issues or challenges that the leadership of an organization face like, prioritizing among different activities, thinking for strategic changes, making decision for business growth, and managing the business in such a way that the organization can cope-up with the market changes along with ensuring the success as well. These leadership issues need to be tackle with much effectiveness as these are the business success drivers of an organization.

Business management is not only about managing its employees and operation to get success. Leaders need to maintain a good relationship among the internal stakeholders of the organization. For this leaders are supposed manage the business policies, politics, and image in the market so that the organization gets a complete support from the stakeholders. These challenges also include getting managerial support, getting a smooth buy-in support from other departments.

According to Buxel, Esenduran, and Griffin, (2015), sustainability of a business is defined as continuing the work or business that the organization is doing over the time, as long as possible. This states that sustainability of a business is dependent on the strategic changes that are made to update its business policies and operation time to time. Beckmann, Hielscher, and Pies, (2014), states that since customer interest is the most important factor to make any business sustainable, organizations have to think about the maintaining the customer interest in their business. In this order to improve the sustainability of any business, a time to time evaluation of organization and its operation is much needed.

To evaluate different factors affecting the sustainability of any business there are several tools and theory practices that can help an organization to evaluate its effectiveness. These tools are essential to be used to evaluate and assisting the organization to move in a right direction so that it can achieve the success in its own terms of objectives. This kind of help provided with these sustainability evaluating tools help an organization to take a competitive advantage too in the globalizing world.

Corporate Sustainability

In corporate terms the sustainability of an organization is defined as corporate sustainability. This corporate sustainability has grown dramatically in terms of recognition and importance due to the globalization of corporate world. This concept of corporate sustainability is used by organizations to balance their business performance among several domains like, economic, social, and environmental. In the process of sustainable development every business has a big responsibility to identify its sustainability factors. In last 15 years, a number of solutions and standards have been developed to evaluate and identify the social, economic, environmental, and sustainability performance like, Advisory group on Corporate Social Responsibility, ISO, and many more (Gomes, Kneipp, Kruglianskas, da Rosa, and Bichueti, 2015).

Along with sustainability development of a business it is important to follow business ethics that are essential for any organization. For organizations, operating or doing business in an ethical way means to distinguish between what is right and what is wrong. From this differentiation organizations have to choose the right choice. Chell, Spence, Perrini, and Harris, J.D., (2016), state that in general practice it is not easy to define thee business ethics in the form of hard-and-fast definitions. Organizations do business to give a competitive return to its shareholder along with treating its customers fairly to make it more sustainable. When it comes to the business ethics all the factors that may affect the environment and community in any manner are to be considered while preparing its business strategies. Along with all these considerations organizations also have to follow some standard codes of behaviour or ethics to create a better work environment for its employees as well as customers (Vitell, 2015).

Doing business is not that much safe. Every business has different types of risks associated with it. According to Salmela, (2016), in the process of making a business successful and sustainable, risks associated with the business are need to be managed in an effective way. These risks may be the key changers in the process of achieving the success and taking a competitive advantage. These risks associated with any business are influenced by various factors like, sales volume, input costs, economic climate, government policies and regulations, and competitions. Therefore, organization having higher business risks must follow a capital structure that provides a lower debt ratio. These business risks are classifies in different ways. Risk based on its effect are classifies as strategic risks, operational risks, financial risks, and hazardous risks.

Importance of Business Ethics

According to Ashenden, and Lawrence, (2016), ensuring the business security against such risks, an effective risk management has to be followed by the organization. This risk management consists of different elements like, identifying risks, analysing, and assessing risks. These risks must be analysed on the basis of their associated threats and opportunities. These risks are associated with different factors like, price fluctuations, political events, accidents, supply chain problems, and economic events as well. In order to ensure the business security, management of the organization has to manage these risks in such a way that they make no impact or less impact on the business. For this a number to tools and practices are used by the organization to prepare a strategies management system (Wong, and Brooks, 2015).

Voegtlin, and Scherer, (2017) states that the business changes that are making a company operating in one country to operate in multiple countries is called globalization of the business. This suggests that the word globalization refers to the changes that are moving the whole business from being self-contained countries and making the whole world integrated in terms of business. These changes that are dragging the world into the globalization have several impacts on the businesses. According to Tuca, (2015), these impacts can be categorised into two main categories as: Production globalization and market globalization. Lorange, P., Ichijo, K. and de Onzoño, S.I., (2018), states that globalization is the process of declining the barriers for companies in selling their products in other then their home countries. This suggests that such change of doing business in multiple countries will make it easier for companies to increase their sale by making business in several countries. In this process countries are reducing their tariffs and also lowering the restriction for crossing borders to make this more effective.

According to Rahman, and Miah, (2017), production globalization can be defined as sourcing of material from multiple companies to make the business cost effective in terms of annual revenue. In this literature Rahman, and Miah, (2017), states that doing so makes it easier for companies to compare different prices of same material available from different countries and sourcing the material from the country suitable for the organization business.

According to Hjorth, and Holt, (2016), states that entrepreneurship in a business can be scare in some cases as there is no guarantee of success in entrepreneurship without an effective and strategic planning that requires a lot of efforts from the organization management and after this it is associated with a number of risks. Risks in entrepreneurships are way more than that of in an established business. In case of enterprises number of risks associated with these is less. In the literature, Belwal, Al Balushi, and Belwal, (2015), state that the enterprises’ perception in students regarding business is completely different. In their literature they suggest that students in Oman have a perception that entrepreneurship is way more effective and can achieve new heights of success in a different manner. Their perception shows that entrepreneurs are more creative and innovative in terms of technical use for doing business. such innovation can take their business to new heights.

Managing Risks in Business


Above literature review concludes that there several business issues that are to be considered for a successful and sustainable business especially in the current globalizing environment of world for business. This current scenario of the world business has increased the importance of leadership in organization to take a competitive advantage and make their business more successful. In this process of making a business more competitive and sustainable challenges faced by leaders in managing the business in an effective way also need to be managed effectively. Literature on leadership issues of a business, discussed in the above literature review suggests that these issues must be considered with higher priority to make the business successful and sustainable in long term.  Different issue of leadership also need to be handled according to their impact on the business. This process of managing issues of business also contributes in the sustainability development of the business.


Ashenden, D. and Lawrence, D. (2016) Security dialogues: Building better relationships between security and business. IEEE Security & Privacy, 3, pp.82-87.

Beckmann, M., Hielscher, S. and Pies, I. (2014) Commitment strategies for sustainability: how business firms can transform trade?offs into win–win outcomes. Business Strategy and the Environment, 23(1), pp.18-37.

Belwal, R., Al Balushi, H. and Belwal, S. (2015) Students’ perception of entrepreneurship and enterprise education in Oman. Education+ Training, 57(8/9), pp.924-947.

Bird, A. and Mendenhall, M.E., (2016) From cross-cultural management to global leadership: Evolution and adaptation. Journal of World Business, 51(1), pp.115-126.

Buxel, H., Esenduran, G. and Griffin, S. 2015) Strategic sustainability: Creating business value with life cycle analysis. Business Horizons, 58(1), pp.109-122.

Chell, E., Spence, L.J., Perrini, F. and Harris, J.D. (2016) Social entrepreneurship and business ethics: Does social equal ethical?. Journal of business ethics, 133(4), pp.619-625.

Covin, J.G. and Miller, D. (2014) International entrepreneurial orientation: Conceptual considerations, research themes, measurement issues, and future research directions. Entrepreneurship Theory and Practice, 38(1), pp.11-44.

Gomes, C.M., Kneipp, J.M., Kruglianskas, I., da Rosa, L.A.B. and Bichueti, R.S. (2015) Management for sustainability: An analysis of the key practices according to the business size. Ecological Indicators, 52, pp.116-127.

Hjorth, D. and Holt, R. (2016) It's entrepreneurship, not enterprise: Ai Weiwei as entrepreneur. Journal of Business Venturing Insights, 5, pp.50-54.

Huda, M., Mat Teh, K.S., Nor Muhamad, N.H. and Mohd Nasir, B. (2018) Transmitting leadership based civic responsibility: insights from service learning. International Journal of Ethics and Systems, 34(1), pp.20-31.

Lorange, P., Ichijo, K. and de Onzoño, S.I. (2018) Business Globalization: The Nightmare of Populism and the Hopes Brought by Technology. In Business Despite Borders (pp. 1-20). London: Palgrave Macmillan, Cham.

Nallusamy, S. (2016) Frequency analysis of lean manufacturing system by different critical issues in Indian automotive industries. In International Journal of Engineering Research in Africa, 23, pp. 181-187.

Rahman, S.M. and Miah, M.D. (2017) The impact of sources of energy production on globalization: Evidence from panel data analysis. Renewable and Sustainable Energy Reviews, 74, pp.110-115.

Salmela, H. (2016) Analysing business losses caused by information systems risk: a business process analysis approach. In Enacting Research Methods in Information Systems (pp. 180-216). London: Palgrave Macmillan, Cham.

Tuca, S. (2015) Global Governance Vs. National Sovereignty In A Globalized World. CES Working Papers, 7(1), p.193.

Tyssen, A.K., Wald, A. and Heidenreich, S. (2014) Leadership in the context of temporary organizations: A study on the effects of transactional and transformational leadership on followers’ commitment in projects. Journal of Leadership & Organizational Studies, 21(4), pp.376-393.

Vitell, S.J. (2015) A case for consumer social responsibility (CnSR): Including a selected review of consumer ethics/social responsibility research. Journal of Business Ethics, 130(4), pp.767-774.

Voegtlin, C. and Scherer, A.G. (2017) Responsible innovation and the innovation of responsibility: Governing sustainable development in a globalized world. Journal of Business Ethics, 143(2), pp.227-243.

Wong, S. and Brooks, N. (2015) Evolving risk-based security: A review of current issues and emerging trends impacting security screening in the aviation industry. Journal of Air Transport Management, 48, pp.60-64.

Yahaya, R. and Ebrahim, F. (2016) Leadership styles and organizational commitment: literature review. Journal of Management Development, 35(2), pp.190-216.

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